Wal-Mart Affecting America's Economy

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On July 2, 1962, Sam Walton opened his first Wal-Mart in Rogers, Arkansas. Over 50 years later, Wal-Mart became known as the largest private employer in the United States and the largest retailer in the world. Wal-Mart have expanded to over 4400 stores across the globe. American truly love Wal-Mart. When there is not any groceries at house the first thought comes to mind is Wal-Mart. Wal-Mart have the cheapest and lowest price that everyone can afford, so when the groceries are scarce at home most often Wal-Mart will be the next stop. People love shopping at Wal-Mart since it is more convenient than any other store around. Wal-Mart plays a tremendous growing role in America’s economy. More than 100 million customers visit Wal-Mart every week,…show more content…
It can reduce competitors business by more than 40 percent. Stores nearby Wal-Mart are at high risk of going out of business. According to Loyola University, Wal-Mart promised to bring more jobs to a poor community in Chicago, but within two years of opening 82 local stores around the area were closed (Barrison). Wal-Mart’s stores demolish more retail jobs than they create. Jobs leave town when Wal-Mart’s stores moves in. Wal-Mart hurts local economy by taking jobs away from people. Businesses within one mile of Wal-Mart have a 25 percent chance of closing the first year and more than 50 percent the second year (Persky). Persky argues that he has evidence that Wal-Mart is bad business for small corporations, especially those located close to the store. Persky founded that every mile closer to the Supercenter, 6 percent more stores are closed. The closer around the store’s location the higher the chance of closure between 35 and 60 percent. Depending on the brand of business, the impact of a Wal-Mart can be worse. Persky said that per mile closure rate increased for drugstore, home furnishing, hardware, and toys about 20 percent. Persky research shows that the overall sales tax revenue was down before Wal-Mart opened and continue to decline after the store was established in Chicago. We are losing millions of good job that cannot be replaced to…show more content…
Wal-Mart emphasizes bring more critically needed jobs to cities where the unemployment rates are immensely high. The issue is this dispute is dead wrong. Conflicting to Wal-Mart’s impressions of being a job creator, but in actuality it is a huge job destroyer. Wal-Mart not only kills competition it destroys any business in their way. According to Geier, Wal-Mart opening has an effect over 150 retail jobs countywide. Geier says when Wal-Mart comes to town it send small companies out of business. Walmart stands as a massive and extremely commanding business; it is the largest corporation in the nation, as well as the largest private employer around the world. Wal-Mart has so much power is can control the labor market (Geier). Geier research shows that Wal-Mart request suppliers to distribute goods at the lowest imaginable cost. Suppliers who refuses Wal-Mart’s ruthless pressure to changed labor expenses to the edge are in danger of having their contracts canceled. Wal-Mart’s demands has forced some of their suppliers in the ground. For example, Wal-Mart had a problem with Levi Strauss clothes because they were too expensive (Fishman). Fishman stated Wal-Mart demanded Levi Strauss to produce cheaper denim with simpler schemes that will be easier and less expensive to produce. In return, Levi Strass brand name was reduced as a consequence of doing business with Wal-Mart. Meanwhile Levi
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